Living through 2008-2009 on Wall Street felt like the worst thing that ever happened to me.
- 20% of my friends fired
- the world was going to end
- did I work for the bad guys?
- lost lots of $0's
But I learned ONE lesson that has made me millions since..
- 20% of my friends fired
- the world was going to end
- did I work for the bad guys?
- lost lots of $0's
But I learned ONE lesson that has made me millions since..
It's called the Balcony, and here's the story:
I was sitting on the trading floor watching colleague after colleague pack up their boxes as the firm fired 20% of the workforce in one day in 2008.
There were tears, angry outbursts and security guards to walk them out.
I was sitting on the trading floor watching colleague after colleague pack up their boxes as the firm fired 20% of the workforce in one day in 2008.
There were tears, angry outbursts and security guards to walk them out.
I'll never forget their faces.
I sat watching the news late at night, saying Goldman was a succubus on the economy. I crossed protests to get to the office.
They yelled while I kept my head down.
Up 30+ floors I looked down on them marching in the cold.
I sat watching the news late at night, saying Goldman was a succubus on the economy. I crossed protests to get to the office.
They yelled while I kept my head down.
Up 30+ floors I looked down on them marching in the cold.
Weeks of this wore on me until I voluntarily looked to find ways to leave.
I wanted the firm in my rearview mirror.
I found a new gig and sold all my stock (at the bottom of the financial crisis).
I wanted the firm in my rearview mirror.
I found a new gig and sold all my stock (at the bottom of the financial crisis).
BUT I missed something entirely, the financial crisis was far from their fault.
In fact, arguably, they had the cleanest balance sheet of any of the banks.
They didn't even have a res mortgage facility to loan to individuals.
Were they saints? No. Were they evil? No.
In fact, arguably, they had the cleanest balance sheet of any of the banks.
They didn't even have a res mortgage facility to loan to individuals.
Were they saints? No. Were they evil? No.
I forgot a golden rule:
When everyone is running the same direction, don't get caught in the mob.
Get to the periphery, take a pause.
My mentor at the time said: Go to the Balcony....
When everyone is running the same direction, don't get caught in the mob.
Get to the periphery, take a pause.
My mentor at the time said: Go to the Balcony....
Close your eyes, imagine climbing up on a high balcony.
Now look down upon the situation like you're not in it.
Remove yourself from the chaos.
Now look down upon the situation like you're not in it.
Remove yourself from the chaos.
Now everytime I think about selling or buying an investment out of emotion I say - Go to the Balcony.
I pull back, get out of the thick of it and confirm it's my head, not my cortisol levels making decisions.
I pull back, get out of the thick of it and confirm it's my head, not my cortisol levels making decisions.
Secret: The least emotional investor always wins.
β’ β’ β’
Missing some Tweet in this thread? You can try to
force a refresh
γ
